Despite an intra-day break out with a daily touching at the 109.23 points, the 2nd board closed below the 108.75 resistance. Therefore, the 108.75 points is still an important resistance for it outlines the memory of the investors which triggers some profit taking activities.

Meanwhile, the 14, 21, 31 EMA is still serving as the dynamic support to the 2nd board index. If the 2nd board index can be supported by the rising dynamic support, the uptrend is likely to resume. Nevertheless, other supports for the 2nd board index are found at 104.6 as well as the 98.5 level.

Although volume for the 2ndboard market increased another 17.4%, the increase of volume during a correction is also suggesting an increase of selling pressure. Therefore, this suggests that the 108.75 level is still an important resistance level. (Study B)

As indicated by C, the Stochastic %K line falls below the 90% level, giving the signal of a short term technical correction. However, if the Stochastic should stay above the 70% level after the technical correction, the market movement for the short term shall remains bullish biased.

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